McNamara dismisses suggestions of difficulties

BERNARD McNAMARA says he has "sufficient assets" to cover his debts and dismissed any suggestions that he or his business were exposed to any financial difficulty.

The Co Clare developer spoke in detail about two of his biggest building projects in a rare interview on RTÉ Radio's Marian Finucaneshow yesterday. He said he would "make a bankable return" on the development of the Irish Glass Bottle site in Ringsend, Dublin, and that he was "very comfortable" with his plans to redevelop the Allianz building next to the Burlington Hotel in Dublin 4.

There has been speculation about Mr McNamara and his development group in recent weeks as he has put some assets on the market and as five public-private partnership (PPP) housing regeneration projects, in which his building company was involved, have stalled following a disagreement with Dublin City Council.

"Unless the world collapses, we don't believe that we are exposed in the kind of situation that people are talking about," he said.

He said he was aware of the frustration felt by residents in St Michael's Estate in Inchicore, one of the housing projects affected.

"In fairness, I am acutely conscious of that. I am from Clare, I am from ordinary people. I bought land to try and provide affordable housing which I have personally found impossible to achieve."

He said he has bought other land for affordable housing and "put my money where my mouth is".

Asked if headlines, such as one in a newspaper yesterday stating that he denied owing €1.5 billion, were read by his bankers, Mr McNamara said: "Of course they are. But the bankers understand the position. Fellows like us have to be in regular contact with our bankers - we supply information, we update it. The bankers certainly haven't been jumping all over me, which seems to be the impression that is given. We have sufficient assets to cover what is there."

Mr McNamara expressed frustration at such headlines and how they would affect his staff. "I came up to Dublin and I have worked bloody hard over 37 years. I don't believe I have done anything dishonourable in terms of blackguarding people or anything else."

He said that if he had been "the cute boy" that everyone says he should have been, he should never have co-invested in the purchase of the Shelbourne Hotel in Dublin. He said he had invested equity of almost €20 million in the hotel.

"If I was to go down in my grave, I would rather have on it that I was one of the guys who got the Shelbourne back to where it is. It is portrayed that we are grabbers and we are a whole lot of things."

Mr McNamara said his largest project was his joint venture in the Irish Glass Bottle site, which comprised three million square feet of developed space. He said development costs would come to "somewhere over €400 a square foot". He said: "If we can sell at €500 a square foot, which is way below the market level, we will still make a bankable return on it."

Mr McNamara said the Allianz site, on which he is planning to build a large office development, had cost €100 million to buy and an additional €30 million in fees.

He said the developed site could earn income of €17 million a year, which would amount to €340 million over 20 years.

"We believe we are very comfortable in that. We can build it and we can still make a developers' margin based on the current market rental," he said.